Why Holding Bitcoin Is a Smart Strategy in the Face of Trade Wars

Bitcoin remains one of the most resilient assets in uncertain times.

The Wall Street Journal (WSJ) recently published an article suggesting that Bitcoin’s price decline in response to new tariffs between the U.S., Canada, and Mexico undermines its value as a hedge 

“Bitcoin — touted as a borderless, digital store of value — is down more than 4% over the last 24 hours, after the White House instigated cross-border tariffs,” the article stated. “Cryptocurrencies were once promoted as investments that act independently of stocks, but in fact their moves often resemble outsized versions of broader market swings.” (Feb 3, 2025).

This analysis, however, misses the bigger picture. Bitcoin’s price fluctuations are a reflection of its high liquidity—it’s a 24/7 global market, making it more reactive than traditional assets. But unlike stocks, Bitcoin is not controlled by a central entity. It operates on a decentralized network of miners, nodes, and developers, meaning no government or institution can manipulate its supply at will.

This independence is exactly why Bitcoin has been a favored asset during times of geopolitical uncertainty. Unlike fiat currencies, which can be devalued through inflationary policies, Bitcoin has a fixed supply. Governments cannot print more of it, enforce policy changes overnight, or shut it down.

Even major financial leaders are recognizing Bitcoin’s unique role. Larry Fink, CEO of BlackRock, recently stated that Bitcoin provides a valuable international asset for those looking to protect their wealth from economic instability.

Yes, Bitcoin reacts to market news in the short term, but over time, its fundamentals have made it the best-performing asset of the past 15 years. The real value of Bitcoin lies in its ability to offer financial freedom, allowing users to transact across borders without restriction and hedge against economic uncertainty.

Rather than focusing on short-term price swings, it's important to recognize Bitcoin's long-term value proposition. As global tensions rise and traditional currencies face inflationary pressures, Bitcoin remains one of the most secure assets available.